8 Euros on the Vtech Genius Flash console

A reduction in Lego. 8 Euros on the Vtech Genius Flash console. Better yet: 22 euros for Smoby kitchen discounts. The battle of prices is launched on the market of the toy for the Christmas 2008. It gives rise to a genuine altercation between signs of wide distribution (40 of sales) and specialists of the toy (48 of the market). Issue: attract consumers at the point where they shake their spending.

"This is the great Bazaar", summarizes Jacky Pellieux, Director of JouéClub. It is hub which launched the offensive in October, immediately followed by Leclerc, proposing in his catalogue of discounts on some toys from 20 to 30 as tickets Leclerc. "A large number of these products are sold at cost, hence a very sensitive gap, especially with the stores of specialists", indicates the society. "These predatory prices are not acceptable, because there is a risk of destruction of the chain and offshoring", rebelled Bruno Bérard, the pattern of Playmobil.

Product to appeal to the hypers

These discounts translated coupons or points on the fidelity card have been authorized by the new law of modernization of economy (LME), which allows the distribution to integrate discounts negotiated with manufacturers in its tariffs. "We expected a decline in prices because of the legislation, but not of such magnitude, recognizes stone Laura, the pattern of Hasbro in France". The economic crisis has crystallized things. "After the decline in attendance of its hypermarkets, retail seeks to toy product of appeal, to develop the traffic in its rays. It also seeks to regain market share on a niche, the toy, where she stopped losing.

On a very elastic market price, the result of this strategy to impose under the tree hurts, especially to the chains of specialists. Because they can not fight with the same weapons. "We cannot afford such remittances, storm Jacky Pellieux.". The hypermarkets can catch up with this decline in margins on food, which is not the case in our stores devoted to toys.

However, JouéClub proposes to repay almost the equivalent of VAT, or 16.4. In Toys 'R' Us, 3 products are available every day at least 50 and the sign has extended its offer of 30 discount on some toys. His boss, Gilles Mollard, relativizes this price war: "it does on 100 to 200 toys, while we offer more than 10,000 references in our stores." We have one third of our activity linked to toys that are not found elsewhere.

The expert advice

Hypermarkets are also having the same quantities in RADIUS. "There will be failures of stocks because hypermarkets have no vocation to have all of the lines until the last minute, as specialists, insists Philippe Gueydon, Chairman of the Board of King toy." Parents who haunted not find the requested toy will come with us.

For these specialists of the toy, the difference is also in the field of the Council: 2,500 seasonal hired at Toys 'R' Us for two months and a half. "This Christmas 2008 will be a break in the distribution of the rôlesentre distributors, said Philippe Gueydon." If the distribution plays price, we must take the market to the top with new lines and demonstrations of products.

In Toys 'R' Us, the reflection is also committed to see how to adapt to this new situation. "We have extended our RADIUS childcare two years ago, then of consoles, became in 2007 the largest seller of Nintendo in France, said Gilles Mollard." We propose also to the textile for children with the brand Orchestra. We must think in strategic terms in the future.